TSLA stock dropped for several reasons.
- First, the large institutional investors didn't like Elon buying Bitcoin. Most of those investors are very conservative and are skittish on the whole crypto currency concept. It doesn't matter that Elon made enough profit already to fund another factory. And will soon be putting that money into play.
- Second, the bond market yield rate is up, and a lot of those institutional investors would rather move funds to that segment than deal with TSLA's volatility.
- Third, as the nation slowly returns to normal, we are already seeing businesses that got a boost from the lockdown like Amazon, Doordash and others starting to suffer. People will be spending less time on Facebook & Twitter when they return to work and there will be other shifts back to consumer behavior similar to what it was prior to the pandemic. TSLA is considered a "tech stock" and is being pulled down by the general investor feelings about that segment.
These things aren't too difficult to figure out. I'm quite the novice in the investing world and just watching about a hour of financial news each day and pooling all the information and it all makes sense. Well, TSLA has seldom made sense, but it's the reality of the moment.
I'm not worried. I am still pretty confident that the projections of a $1200 share price by the end of the year by the real experts is going to happen. And I will continue to sit on the majority of my holdings.